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Arrest Is Made on Charges Similar
To 1996 Penny-Stock Fraud Case

Dow Jones Newswires

Updated Feb. 7, 1998 5:08 p.m. ET

NEW YORK -- A New York City man was arrested Friday on charges strikingly similar to those filed against dozens of others in a 1996 federal sting operation that targeted penny-stock fraud, but prosecutors won't say if the two cases are related.

Michael Sebastian Neufeld was charged with trying to make illegal payments to an undercover federal agent posing as a broker, to get the "broker" to push shares of a small,...